IDEAS home Printed from https://ideas.repec.org/a/fan/rissri/vhtml10.3280-riss2013-002008.html
   My bibliography  Save this article

A measure of the sustainable connection between highest remunerations? and economic performance

Author

Listed:
  • Martina Vallesi

Abstract

Focusing on the agency conflict between manager and shareholders and on the definitions of tunneling and propping, we delve into the related party transactions between a group and its management. Firstly, the paper examines actual and previous information to disclose for directors board remunerations (as for IAS, Consob and TUF). Such remunerations are based on a contract with legal and moral managers obligations to the companies of the group they run and to the stakeholder of such companies. For this reason, a balance between their remunerations and their performance is necessary to achieve preserving the interests of all the subjects involved in the companies? activities and maintaining the continuity of the group. Then, using regressions, we measure, in a sample of listed companies, if there is a significant and sustainable connection between particular remunerations of the highest paid members of the directors board and the economic group performance.

Suggested Citation

  • Martina Vallesi, 2013. "A measure of the sustainable connection between highest remunerations? and economic performance," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 2013(2), pages 145-159.
    • Handle: RePEc:fan:rissri:v:html10.3280/riss2013-002008
    as

    Download full text from publisher

    File URL: http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=50182&Tipo=ArticoloPDF
    Download Restriction: Single articles can be downloaded buying download credits, for info: https://www.francoangeli.it/DownloadCredit
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cheung, Yan-Leung & Rau, P. Raghavendra & Stouraitis, Aris, 2006. "Tunneling, propping, and expropriation: evidence from connected party transactions in Hong Kong," Journal of Financial Economics, Elsevier, vol. 82(2), pages 343-386, November.
    2. Yenpao Chen & Chien-Hsun Chen & Weiju Chen, 2009. "The impact of related party transactions on the operational performance of listed companies in China," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 12(4), pages 285-297.
    3. Michele Pizzo, 2013. "Related party transactions under a contingency perspective," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(2), pages 309-330, May.
    4. Friedman, Eric & Johnson, Simon & Mitton, Todd, 2003. "Propping and tunneling," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 732-750, December.
    5. Paine, Lynn Sharp, 1996. "Moral Thinking in Management: An Essential Capability," Business Ethics Quarterly, Cambridge University Press, vol. 6(4), pages 477-492, October.
    6. Fama, Eugene F, 1980. "Agency Problems and the Theory of the Firm," Journal of Political Economy, University of Chicago Press, vol. 88(2), pages 288-307, April.
    7. Claessens, Stijn & Djankov, Simeon & Lang, Larry H. P., 2000. "The separation of ownership and control in East Asian Corporations," Journal of Financial Economics, Elsevier, vol. 58(1-2), pages 81-112.
    8. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    9. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-325, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pietro Fera & Rosa Vinciguerra, 2022. "Minorities? Representativeness on the Board and their Effect on the Level of Compliance with the Italian RPTs Regulation," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2022(2), pages 57-88.
    2. Khosa,Amrinder & Ahmed,Kamran & Henry,Darren, 2019. "Ownership Structure, Related Party Transactions, and Firm Valuation," Cambridge Books, Cambridge University Press, number 9781108492195.
    3. Pier Luigi Marchini & Tatiana Mazza & Alice Medioli, 2018. "The impact of related party transactions on earnings management: some insights from the Italian context," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 22(4), pages 981-1014, December.
    4. Kun Wang & Greg Shailer, 2015. "Ownership Concentration And Firm Performance In Emerging Markets: A Meta-Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 29(2), pages 199-229, April.
    5. Michele Pizzo, 2013. "Related party transactions under a contingency perspective," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(2), pages 309-330, May.
    6. Connelly, J. Thomas & Limpaphayom, Piman & Nagarajan, Nandu J., 2012. "Form versus substance: The effect of ownership structure and corporate governance on firm value in Thailand," Journal of Banking & Finance, Elsevier, vol. 36(6), pages 1722-1743.
    7. Mohd Mohid Rahmat & Kamran Ahmed & Gerald J. Lobo, 2020. "Related Party Transactions, Value Relevance and Informativeness of Earnings: Evidence from Four Economies in East Asia," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 23(01), pages 1-42, March.
    8. Bansal, Shashank & Thenmozhi, M., 2020. "Does Concentrated Founder Ownership Affect Related Party Transactions? Evidence from an Emerging Economy," Research in International Business and Finance, Elsevier, vol. 53(C).
    9. Attiya Y. Javid & Robina Iqbal, 2010. "Corporate Governance in Pakistan : Corporate Valuation, Ownership and Financing," Governance Working Papers 22830, East Asian Bureau of Economic Research.
    10. Ping Sun & Sheng Ma & Xinxin Xu, 2022. "Multi-Factor Collaborative Governance of Controlling Shareholder Expropriation Behavior in Emerging Economies: A Perspective of Double Principal-Agent Conflicts," SAGE Open, , vol. 12(2), pages 21582440221, May.
    11. Kim, In Joon & Eppler-Kim, Jiyeon & Kim, Wi Saeng & Byun, Suk Joon, 2010. "Foreign investors and corporate governance in Korea," Pacific-Basin Finance Journal, Elsevier, vol. 18(4), pages 390-402, September.
    12. Nguyen, Thi Tuyet Mai, 2017. "An examination of independent directors in Vietnam," OSF Preprints ay6dv, Center for Open Science.
    13. Sumon Kumar Bhaumik & Andros Gregoriou, 2010. "‘Family’ Ownership, Tunnelling And Earnings Management: A Review Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 24(4), pages 705-730, September.
    14. Shamsul Abdullah, 2014. "The causes of gender diversity in Malaysian large firms," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 18(4), pages 1137-1159, November.
    15. Cedrix Ngandop Djeutcheu, 2019. "Ownership Structure and Islamic Banks Performance: An Empirical and Multiregional Tests Before, During and after the Last Global Financial Crisis," International Journal of Economics and Financial Issues, Econjournals, vol. 9(2), pages 202-218.
    16. Pursey Heugens & Marc Essen & J. Oosterhout, 2009. "Meta-analyzing ownership concentration and firm performance in Asia: Towards a more fine-grained understanding," Asia Pacific Journal of Management, Springer, vol. 26(3), pages 481-512, September.
    17. Yan-Leung Cheung & Yin Dang & Ping Jiang & Tong Lu & Weiqiang Tan, 2018. "Does the market care about investor protection practices in China?," Applied Economics, Taylor & Francis Journals, vol. 50(5), pages 492-509, January.
    18. Rekha Handa & Balwinder Singh, 2017. "Performance of Indian IPOs: An Empirical Analysis," Global Business Review, International Management Institute, vol. 18(3), pages 734-749, June.
    19. Henrique Castro Martins & Cristiano Machado Costa, 2020. "Does control concentration affect board busyness? International evidence," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 24(3), pages 821-850, September.
    20. Nicola Moscariello & Michele Pizzo & Dmytro Govorun & Alexander Kostyuk, 2019. "Independent minority directors and firm value in a principal–principal agency setting: evidence from Italy," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(1), pages 165-194, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fan:rissri:v:html10.3280/riss2013-002008. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stefania Rosato (email available below). General contact details of provider: http://www.francoangeli.it/riviste/sommario.aspx?IDRivista=168 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.